Wednesday, October 17, 2007

Nokia Q3 net sales increased 28% to EUR 12.9 billion, compared with EUR 10.1 billion in the third quarter 2006. At constant currency, group net sales would have increased 32%. Q3 operating profit grew 69% to EUR 1.9 billion (including the EUR 26 million net negative impact of special items), compared with EUR 1.1 billion in the third quarter 2006 (including the negative impact of the EUR 128 million special item).

Some highlights:

Operating margin of 14.6%, up sequentially from 11.0% in Q2 2007, excluding special items.

Nokia device volumes reached 111.7 million units, up 11% sequentially and up 26% year on year. Estimated industry device volumes for Q3 were 286 million units, up 9% sequentially and up 17% year on year. This gives Nokia an estimated device market share of 39%, up from 38% in Q2 2007 and up from 36% in Q3 2006.

The proportion of devices Nokia sold in the under EUR 30 category increased significantly, both sequentially and year on year.

Mobile phone net sales in Q3 grew 3% to EUR 6.1 billion, compared with EUR 5.9 billion in the third quarter 2006. Strong overall volume growth was partially offset by a significant ASP decline year on year, driven primarily by a higher proportion of entry-level sales. Net sales year on year growth was strongest in Asia-Pacific and Middle East & Africa, followed by China. Net sales were down significantly in North America, and to a lesser degree in Latin America and Europe year on year.

Nokia Enterprise Solution sales increased 105% to EUR 526 million, compared with EUR 257 million in the third quarter 2006. Net sales were up significantly year on year in all regions except North America. Net sales were driven primarily by strong volume growth in Enterprise Solutions device business, especially the Nokia E65, compared to the third quarter 2006.

Nokia Siemens Networks posted Q3 net sales of EUR 3.7 billion.

Nokia Siemens Networks operating margin, excluding special items, was -1.0% and was a positive 3.0%, excluding special items and Purchase Price Accounting related items. The company said it is on track to achieve the earlier announced cost synergy targets, including the planned personnel reductions.